The impact of fund management on a business

1. The impact of fund management on a business The initial stages of setting up a new business involves a lot of market research and analysis. Then, there needs to be a thorough understanding of whether setting up the business idea in the present market situation will actually be fruitful for you and your partners. You need investors for a lot of financial backing up. If not, then you will have to raise capital on your own through some personal resources or loans. Do remember, that for any business to set up, it takes an ample amount of time to finally start earning profits. It is very possible that the first quarter of the business is going to incur loss and close to no profits. But as you learn along the way and you better your business, you will recognize the strength and weaknesses of the business and then work accordingly. When the time finally comes, that your business is gaining all the profits that it requires, you, as the business owner and the employer will also have to chalk out a plan to decide as to what’s to be done with the money that you have at hand. You can either use it for the betterment of your working space, or you can use it to invest it in such a way, that it will become a support to your business. It will become that personal resource which you can use in order to expand your business or venture out with a newer idea for the business. This money can also be put to use in paying the loans of the company, if any, so that the entire business enterprise becomes yours and it does not have any potential outside threat. Out of the three mentioned options, investment is the best option. Investment makes sure that your money grows well. So, you can consult with a fund management company, which will assign you a proper investment manager, or an asset manager. This manager will be responsible to make your money grow, to help your business push boundaries and become stable. The asset manager makes sure that they first, thoroughly understand the present tally of assets and liability of the business. if right now, the liabilities are more, then the asset manager will have to work towards changing this tally. www.avendus.com

2. It is important to understand that the role of asset management company is different from that of investment banking companies. Investment banking companies help their clients in bigger dealings and in raising a pool of capital that is mostly needed to expand the business venture. Asset manager helps the wealth of the individual to grow. Today, the asset of fund management companies have a lot of responsibility towards their investors. They need to make sure that the investors understand newer concepts like we have the ESG funds in India. Since they are the guides for these investors in their investment journey, asset or fund managers need to be on their toes with all this information, always. www.avendus.com